What is the missing cash flow value

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Daigo Dojima recently invested $5,500 in a project that is promising to return 2.25 percent per year. The cash flows are expected to be as follows:

End of Year Cash Flow
1 $1000
2 950
3 875
4 ???
5 850

Note that the 4th year cash flow is unknown. Assuming the present value of this cash flow stream is $7,500 (that is, CF0 = -7500), what is the missing cash flow value (that is, what is the cash flow at the end of the 4th year)?

Reference no: EM132675932

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